Globe Telecom to Open Largest Data Center in Two Years

Globe Telecom Inc. is set to open its largest data center within the next two years, according to President and CEO Ernest Cu. The telecommunications company is capitalizing on the growing demand for data centers and customers’ desire to mitigate geopolitical risks.

The facility, located in Quezon City, Philippines, is being built in partnership with ST Telemedia. Spanning over 83,000 square meters, it will have a capacity of 124 megawatts across four buildings. The new data center marks Globe’s transition from a telco into a technology firm as it seeks avenues for further growth, especially since the telecommunications and broadband businesses are expected to plateau in the near future. Globe’s competitor, PLDT Inc., currently leads the data center race in the Philippines with 10 data centers accounting for the majority of the domestic industry’s power share.

In addition to the new data center, Globe is also considering establishing two more landing stations in underserved areas of the country to enhance connectivity and data capacity. Cu believes that this increased connectivity and data center capacity will position the Philippines as an attractive option for hyperscalers, referring to large cloud service providers. With capacity limitations in Singapore and geopolitical concerns in Hong Kong, the Philippines could emerge as a viable alternative.

Globe Telecom is partially owned by Singapore Telecommunications Ltd., which holds approximately 47% of its common shares, and Philippine conglomerate Ayala Corp., which has a 31% stake.

Globe has also been focusing on the growth of its mobile-wallet service, GCash. Cu mentioned the possibility of an initial public offering for GCash within the next one to two years. However, he clarified that there is no urgency for GCash to go public as it can secure funding from private sources. Cu noted that many investors are expressing interest in acquiring equity in GCash due to its growth potential and dominance in the country.

After closing 2.4% lower on Friday, Globe Telecom shares saw an increase of up to 2.1% in morning trade.